Consolidation may not be on the top of your mind right now, but life is full of unexpected surprises and a few emergencies could occur. These sudden events could cost us a lot of money and you could find yourself terribly short on cash between pay periods. Other than personal or family emergencies, there could be unwelcome surprises like your car breaking down or you suddenly find yourself ill and unable to work. That can be a time when payday loan agencies come to the rescue. They offer a loan which will cover you in the short term but can have negative repercussions later on.
The effort of making payments on payday loans in excess of regular financial obligations could prove to be extremely difficult. If you have multiple payday loans (which should never be the case, but sometimes ends up happening despite the best efforts of responsible borrowing and lending) you can be paying large amounts in terms of interest and fees. Payday loans serve an excellent purpose of meeting the expenses of sudden needs quickly and without much hassle, however they should not be used as a long-term solution. Instead, you can consider a debt consolidation to pay off the various bills you owe so that you can get a hold of your finances.
Consolidation of Debts
Consolidating your debts is an extremely popular option when you are faced with a pile of different bills, loans and interest payments. A standard debt consolidation is where the borrower will work with lenders to reduce the interest and fee amounts associated with each debt. When an agreement is reached between the borrowers and the lenders, a payment plan can be set up that is easy to follow. You can take the help of a number of agencies who specialise in debt consolidation. Once you have reached an agreement with the lenders, you can provide a certain amount of money as payment until all the loans are repaid completely. This kind of consolidation will be displayed in credit reports but it is much better to have consolidation appearances instead of no payment notices or late fees for being unable to pay.
Perhaps a simpler alternative is getting a Flex Loan from Cashco Financial. Flex Loans involve you taking out a loan of up to $5,000 for the express purpose of paying off multiple debts. It can be thought of as a “debt consolidation” loan as it will be utilised to pay off and consolidate multiple debts into a single personal loan. This loan is to be paid back through flexible weekly, bi-weekly or monthly payments. Flex Loans have a much lower interest rate and actually rebuild credit scores as an additional benefit for you.
Consolidating Payday Loans
In case you have a number of payday loans, it is important that you repay as soon as possible. The best scenario is that you pay off each of them on scheduled paydays as previously agreed by the loan agreement. When you payoff any payday loans, you can regain control of your finances. It is not sensible to use the payday loans for making any monthly payments. If you do this, payments soon turn into a vicious circle which ruins your financial standing.
Payday loans are a form of high cost credit. The principal pain point is the length of loan. Some payday loans can be considered as a revolving debt; you can first pay off and then borrow again for an unlimited period of time. However, it is much more advantageous to find an alternative that gets you the money you need to be able to take care of the things you need to pay for and not need to consistently re-borrow. If you are struggling with debt issues, come into any one of our Cashco locations today and we will be happy to help get you back on track.